Business incorporation a decade or two ago is a tedious process that businesses often reach bankruptcy before being awarded corporation status. However, recent developments in the business world and the creation of Business Corporation Act make the process quicker and easier. Business journals outline three steps for business incorporation: securing corporate name, submitting required documents, and paying filing dues. These process can be done with the services of your lawyer or you can opt to D-I-Y.
First, secure and ensure a corporate name. Check other businesses’ names before deciding on yours. Business incorporation processes are usually disrupted by businesses filing names already owned by other companies. Also, avoid naming your corporation names that sound and spell like other companies’ names. Not only same sounding names might confuse possible clients, these can also cause your business to be overshadowed by the other company. This is especially true if they have been in the business longer, hence more popular.
Second, prepare all documents pertinent to business incorporation application. File these documents as early as you can for quicker processing. Third, pay all required state fees for application; taxes and other fees is a must if you want an efficient processing of your papers. State filing rates vary from state to state, these can be as low as $100 or as high as $400. Paying these dues is necessary to establish your company in that particular state.
These can be tedious steps if you opt to apply by yourself. D-I-Y application requires you to be knowledgeable about state laws concerning business incorporation. Preparing and collecting required documents alone is a long and ardorous task. In addition, you must follow-up and inquire about the status of your application with the authorized agencies yourself. However, using incorporation service groups reduces your burden considerably. After furnishing these companies with information, they will check the corporate name for you, file required documents, and even pay initial dues for you. In addition, they will also assume the duty of following up and inquiring about your application with the respective agencies. These companies have also done these application process many times, which translates into knowing key people inside these agencies which can give your paper or application a push in the right direction. This will result to an easy and efficient business incorporation application for you as their client.
Lastly, these service companies require minimal and nominal fees aside from state filing dues. To promote fast processing, they even allow clients to submit necessary data and information online. Though lawyers can do the job for you, you have to pay them hourly for their service. The cost alone might drive you to cancel business incorporation plans as it usually takes a month or so to be fully incorporated.